Technical Indicators Signal Temporary Rebound
Bitcoin (BTC) may be forming a short-term bottom after weeks of selling pressure, with signs pointing toward a potential relief rally in the $100,000–$110,000 range. Market activity indicates that large investors, or “whales,” are opening new long positions, even as overall sentiment hovers near extreme fear.
One key signal is the Relative Strength Index (RSI) on the weekly chart, approaching the 30 level. Historically, this range has coincided with market bottoms, suggesting the potential for at least a temporary reversal, though it does not guarantee the start of a sustained bull run.
Key Resistance Levels and Market Structure
The 50-week moving average, near $102,000, is also acting as a focal point. Previous cycles have shown that Bitcoin often retraces toward this level after declines, indicating that a rebound into six figures is plausible before broader trends resume.
Macro conditions are providing further support. Expectations that quantitative tightening could end soon and speculation about potential interest rate cuts may ease financial conditions, favoring risk assets like Bitcoin.
Cautious Long-Term Outlook
Despite the near-term optimism, the broader market remains in bear territory, and any bounce could be followed by renewed weakness. Crypto sentiment, however, has improved slightly, rising from “Extreme Fear” to a Fear level of 28, reflecting a tentative shift in trader confidence.
Analysts highlight that Bitcoin offers an asymmetric risk-reward opportunity, as current prices may underestimate improving macroeconomic conditions, drawing parallels to prior rebounds after market crashes.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.